According to the Oracle Supply Chain Management Cloud: Plan to Produce training course3, contract

manufacturing is the process of outsourcing the production of goods or services to a third-party

supplier. Contract manufacturing process in an organization requires four tasks to be set up: define

contract manufacturing organization (A), define contract manufacturer supplier ©, define contract

manufacturing items (D), and define work definition of the finished good item (E). A contract

manufacturing organization is an inventory organization that represents the location where the

contract manufacturer performs the production activities. A contract manufacturer supplier is a

supplier that provides contract manufacturing services to the buying organization. A contract

manufacturing item is an item that is produced by a contract manufacturer based on a work

definition provided by the buying organization. A work definition is a document that defines the

operations, resources, materials, and output for producing an item. Define contract manufacturer

customer (B) is not a task that is required to be set up to execute contract manufacturing process in

an organization, as it is not relevant to the buying organization.